European legacy specialist Compre is putting up an insurance company in Malta, but not because of Britain’s departure from the bloc.
Compre – which has operations in the UK, Finland, Germany, Sweden, and Switzerland – has announced it has received the Maltese Financial Services Authority approval for the establishment of the firm.
"This is the culmination of plans we have had for many years. With the added ability to transfer new and existing portfolios into Malta, Compre becomes a far more agile business," said chief executive Nick Steer, who stressed that the move had been intended long before the UK referendum and was not a Brexit reaction.
The insurer said the new entity will be formed by transferring London & Leith Insurance SE’s domicile from the UK to Malta and will be established as a protected cell company. According to Compre, this will allow the firm greater flexibility to undertake transactions.
London & Leith Insurance acquires portfolios of discontinued non-life insurance and reinsurance business, and the relocation will enhance its ability to provide finality for customers transferring portfolios or selling books of business or entire companies.
"Gaining permission to provide finality solutions out of Malta, and the ability to use individual cells for particular business, marks an important step in the next phase of Compre’s development," noted Steer. He said the company is in a stronger position to meet demand and capitalise on new run-off opportunities.
Compre has also secured additional funds for further acquisitions through a revolving credit facility with the Royal Bank of Scotland.
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